Aspen Power Partners, a distributed generation platform focused on solar and storage assets across the U.S., raised $120 million in its latest funding round.
The funding round was led Ultra Capital, Redball Power, and others. Aspen was incubated at Energy Impact Partners, a global investor in the sustainable energy transition.
“We are proud of the expert team we have assembled over the past year, which was purpose-built to deliver developers and customers with the best possible outcome at any stage in the project lifecycle. We look forward to innovating with our key stakeholders as we develop and finance distributed generation solar, storage, and electric vehicle charging projects during this critical climate decade,” said Jorge E. Vargas, Managing Partner at Aspen Power Partners.
The firm has entered into an agreement to develop or acquire 48 community and distributed solar projects totaling over 200 MW across California, Maine, Maryland, New York, and Pennsylvania.
“We have had a front-row seat to the formation and growth of the world-class team at Aspen Power Partners over the past couple of years and are excited to see them tackle one of the fastest-growing segments of the energy transition market,” said Sameer Reddy, Managing Partner at Energy Impact Partners.
At the end of 2021, the Biden administration set an ambitious target of powering 5 million American homes with community solar projects by 2025. This growth requires nearly a 700% increase in current capacity. On a state level, Governor Kathy Hochul of New York announced a framework to achieve at least 10 GW of distributed solar by 2030.
According to Mercom’s recently published Q4 2021 solar funding and M&A report, in 2021, announced debt financing came to $15.8 billion, a 91% increase compared to $8.3 billion raised during 2020. Record securitization activity was a key contributor to the rise in debt financing activity during 2021, with $3.7 billion in 13 deals.